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Question:

Identify key influences of an Organisational Structure and utilise this to improve Quality.
 
 

Answer:

Introduction

In the present scenario, building a quality organization is crucial to achieving long term growth and success. Furthermore, companies are now required to carry out analysis of their structure, core strategies, and objectives at regular intervals to sustain in the marketplace (Alden 2016). Nowadays, the competition among industries has become highly intense, and businesses need to make changes in their overall marketing tactics and strategies to attract new customers and retain old ones.

The present study is based on Woolworths Limited which is an Australia based supermarket retailer.  The selected organization is considered as the largest company in the country regarding annual revenue generated. This study reflects the goal and strategic plan of Woolworths Limited.

Organization goal

The goal Woolworths Limited is to become a leading and number one brand in all categories. Furthermore, the objective of selected business is to achieve a degree of customer satisfaction and retain them in the long run. The mission of Woolworths Limited is to deliver products and services which are the best regarding value, convenience, and overall quality. At present, the brand is carrying out its business operations with more than 200000 staff members and every weak it provides products and services to more than 29 million people (Woolworths limited 2017). Woolworths Limited has developed the partnership with various manufacturers and farmers across Australia to ensure availability of quality products. The organization was founded in the year 1924 and till now it has been able to deliver high quality of goods and services to all its customers. Quality products and convenient services have contributed a lot to the success of Woolworths Limited.

On the other side of this, the organization also emphasized the development of team which can understand the changing need, demand and deliver products/services according to the same. Another business goal of Woolworths Limited is to keep improving its process and maintain low operational cost. This goal will contribute a lot to achieving long term growth and sustainability of the selected business enterprise. Apart from this, updating products and services at regular intervals is another business objective of Woolworths Limited. The selected corporation has developed different strategies and action plan to achieve all its set goals and objectives (Woolworths limited 2017). Woolworths Limited also has a goal of refreshing all its stores at regular intervals to maintain the interest of all its customers. In the long run, the selected company aims at emerging as one of the most cohesive brands in the market. Customers are considered as the heart of the company’s overall operations, and it always focuses on identifying the fundamental need and demand of all customers. Further, through employees and other staff members, Woolworths Limited also emphasized on creating innovative ways to serve a client and enhance their level of satisfaction.

 

Discussion on organizational strategic plan

It can be expressed that to accomplish all its business objectives and goals, the company has developed a strategic plan. The most important part of the company’s strategic plan is that it focuses on encouraging hard work and integrity among all the staff members (Ariyawardana, Ganegodage & Mortlock 2017). The organization has developed a culture which is quite down to earth and providing adequate growth opportunities to all employees. It results in generating a strong satisfaction among all workers and also motivates them to give their best towards the success of Woolworths Limited. The strategic plan developed by the corporation can also be considered as customer centric as it focuses on identifying the changing demand of people in the market. The action plan emphasizes on delivering products and services which can make the lives of individuals better and simpler.

Apart from this, the strategy encourages innovations within all aspects of the business.  It supports in efficiently serving the customers and achieving the higher degree of satisfaction with them. The strategic plan of Woolworths Limited has been developed by three major parameters which are the offer, efficiency, and growth. First of all, the company focuses on enhancing the way in which products and services are being offered to its customers (Bailey 2017). In addition to this, it keeps on innovating new strategies and products so that the interest of clients is maintained in the best possible manner.

The strategic plan developed by the company also focuses on improving the overall efficiency of business practices and operations. All the partners and employees are provided with the freedom to speak up. It can be asserted that Woolworths Limited has set up open communication channels which allow staff members and other business partners to present their views and opinions towards success and growth of the corporation (Arli et al. 2013). On the other side of this, aggressive marketing strategy is also an integrated part of the selected business’s overall strategic plan. The use of marketing practices supports the brand in creating awareness about its products and services among people in the market. It also plays a crucial role in creating demand among customers and encouraging them to buy the products offered by Woolworths Limited. 

Views on strategy to achieve specific company goal

It can be stated that the strategy of Woolworths Limited is active enough to meet its goals and objectives. Putting customers in the first place has helped the company to retain its old, valuable customers and attract new ones. Furthermore, it has also opened new doors for long term growth and development of the organization. In the present scenario, the retail supermarket industry of the country has become highly intense (Biddle 2016). There are various small, medium and large scale businesses operating in the country. Thus, it is not easy for a company to retain its customers in a long run as people in the market have the wide range of options available to them. The strategy can be termed as good enough to accomplish the goals and objectives of the selected business enterprise.

The rationale behind this is that the approach focuses on almost every aspect which is crucial for long term success of an organization. For example, it has developed an open communication strategy which supports in encouraging new and innovative ideas to serve customers. Employees feel free to discuss the issues and challenges faced at the workplace, and this creates the sense of satisfaction among them. It also encourages them to give their best towards the accomplishment of aim and business objectives of Woolworths Limited (Bailey 2017). Other than this, the strategy also focuses on promoting the views of partners such as farmers and manufacturers. It helps in getting adequate corporation from all and carries out the smooth flow of all business operations.

 


The selected strategy is also useful because it focuses on encouraging innovation which is crucial for long term success of an organization. In highly competitive markets or industries, businesses are required to innovative new product or service at regular intervals to gain the competitive advantage over other market players. However, it can be critically argued that the company does not emphasize on conducting training and development programs for workers. In future, it can emerge as the biggest obstacle to long term growth and accomplishment of long term objectives (Chalmers & ’Brien 2013). Woolworths Limited needs to focus on offering training programs to all staff members so that their knowledge level and skill set can be enhanced.  

Rationale behind some structure support the selected strategy and some do not

Organization structure can be defined as the level of hierarchy which exists within a business enterprise. Nowadays, efficient and suitable organization structure is crucial for success and growth of an organization. It can be expressed that structure represents the pyramid or organizational chart of a company (Bailey & Bailey 2016). The structure is important because it assists in establishing clear cut authority and relationship within an enterprise. In addition to this, the structure is crucial as in setting up communication pattern in companies. The functions and business operations can be easily carried out with the help of creating a suitable organizational structure. However, it can be critically argued that defining and establishing appropriate structure is not an easy task for companies such as Woolworths Limited as there are wide ranges of factors which need to be taken into consideration.

For example objectives of the business, long term goals, nature of operations are some factors which need to be taken into account while selecting the organizational structure. It can be expressed that there are different types of organization structure and some can contribute in achieving the objectives of Woolworths Limited while other structure cannot be termed as effective regarding accomplishing the goals (Devin & Richards 2016). For a company like Woolworths Limited, the vertical structure cannot be considered as suitable one. The rationale behind this is that the mentioned above structure encourages companies to follow a healthy chain of management while carrying out their business operations and activities.  In such type of structures, the decision making is performed by the top management and employees working at the lower level are required to follow the orders and decisions (Johnston et al. 2017).

In companies with a vertical structure, the power and authorities flow from top to bottom. This type of structure cannot be termed as useful for businesses such as Woolworths Limited. The rationale behind this is that it does not encourage the views, opinions of workers and other trading partners (Frederick Rose, Hawryszkiewycz & Kang 2014). Furthermore, most of the decisions are being made by top management, and this will result in developing dissatisfaction among staff members. It will also hamper the overall morale, motivation, and productivity of workers.

On the other hand, the structure such as horizontal structure will contribute a lot to the accomplishment of Woolworths Limited aim and objectives. The reason behind this is that such structure has no or very less defined chain of command. It means workers and staff members are provided with an opportunity to present their views and ideas towards the success of the company.  The horizontal organizational structure is also called as flat structure as the middle the layer of management is almost eliminated in such structures (Ashkenas et al. 2015). The issues and problems faced by employees are also resolved effectively in horizontal organizational structures. Further, flat structure of the organization will also support the selected business enterprise to have a greater degree of flexibility in the context of decision making.

 


The use of this structure will provide the company with an opportunity to make fast and more efficient decisions towards the accomplishment of organizational goals and objectives. Line and staff organizational structure will also not support the selected business strategy of Woolworths Limited (Greenland et al. 2016). The reason behind this is that the chance of issues and conflicts between line employees and other staff members. It will act as a hurdle for Woolworths Limited regarding accomplishing its long term goals and objectives.

Another drawback associated with the use of line and staff organizational structure is that the structure does not promote effective coordination between employees and this can hamper the overall productivity of Woolworths Limited. On the other hand, Matrix organizational structure is also not going to support the strategy of the selected business enterprise (James 2016). The rationale behind this is that such structure has the high cost of administrations and the chosen company is looking forward to maintaining a low cost of operations. In addition to this, the prospects of conflicts at the workplace are also very high in the matrix structure, and therefore, it cannot be termed as useful with regard to supporting the strategy adopted by Woolworths Limited.

Competitive organization of the 21st century

To become the competitive organization of the 21st century, Woolworths Limited will be required to focus on certain parameters and make use of various strategies. One of the most critical areas among all is linked the training and development of employees. It can be expressed that the company should emphasize on conducting training programs for all staff members frequently. It will help in enhancing the existing knowledge base and skill set of employees. In addition to this, training programs based on the learning style of employees will also play a crucial role in making the employees competitive in the present scenario (Lavelle 2017).

Continuous innovation is another important parameter which can assist Woolworths Limited to become the competitive organization of the 21st century. Innovations in products, services, and business strategies are going to help the selected corporation in getting the competitive advantage over other market players in the industry. It will also support in attracting more and more customers who will further assist in long term sustainability of the business enterprise (Jie, Parton & Chan 2015). Transparency in HR and management practices is another important strategy which can be taken into consideration by Woolworths Limited to emerge as a competitive organization of the present era. Transparency is going to support in developing a strong sense of satisfaction among workers and will also help in retaining skilled and talented workers in the long run. Motivated and satisfied employees will contribute a lot to long term success of the selected organization.

 

Conclusion

From the above report, it can be concluded that attaining the higher degree of customer satisfaction is the primary goal of Woolworths Limited. Further, the company is using open communication channels to encourage views of employees and other stakeholders towards growth and success. It can also be inferred that suitable business strategy has been developed by Woolworths Limited to accomplish all its objectives and goals. To emerge as a competitive organization of 21st century, the company will be required to focus on the parameter such as transparency, innovation, and training of workers.

 

References

Alden, S 2016, 'Warning! Don't think that an agreement to act in good faith is to be taken lightly. ', Governance Directions, , vol 68, no. 3, p. 174.

Ariyawardana, A, Ganegodage, K & Mortlock, MY 2017, 'Consumers' trust in vegetable supply chain members and their behavioural responses: A study based in Queensland, Australia.', Food Control, vol 73, pp. 193-201.

Arli, V, Dylke, S, Burgess, R, Campus, R & Soldo, E 2013, 'Woolworths Australia and Walmart US: Best practices in supply chain collaboration.', Journal of Economics, Business & Accountancy Ventura, vol 16, no. 1.

Ashkenas, R, Ulrich, D, Jick, T & Kerr, S 2015, The boundaryless organization: Breaking the chains of organizational structure, John Wiley & Sons, New Jersey.

Bailey, M 2017, 'Absorptive Capacity, International Business Knowledge Transfer, and Local Adaptation: Establishing Discount Department Stores in Australia ', Australian Economic History Review, vol 57, no. 2, pp. 194-216.

Bailey, M & Bailey, M 2016, 'Marketing to the Big Middle: establishing Australian discount department stores. ', Journal of Historical Research in Marketing, vol 8, no. 3, pp. 416-433.

Biddle, I 2016, ' The Wesfarmers/Woolworths duopoly war: The Bunnings vs. Masters battle. ', Busidate, vol 24, no. 3, p. 3.

Booth, S & Coveney, J 2015, Food democracy: From consumer to food citizen, New York City, Springer.

Chalmers, J,CN,DS & ’Brien, P 2013, 'Real or perceived impediments to minimum pricing of alcohol in Australia: public opinion, the industry and the law. ', International Journal of Drug Policy, vol 24, no. 6, pp. 517-523.

Devin, B & Richards, C 2016, 'Food waste, power, and corporate social responsibility in the Australian food supply chain. ', Journal of Business Ethics, pp. 1-12.

Frederick Rose, J, Hawryszkiewycz, I & Kang, K 2014, 'When and how to facilitate the introduction of new knowledge processes in organisations. ', VINE: The journal of information and knowledge management systems, vol 44, no. 2, pp. 210-227.

Greenland, SJ, Greenland, SJ, Johnson, L, Johnson, L, Seifi, S & Seifi, S 2016, ' Tobacco manufacturer brand strategy following plain packaging in Australia: implications for social responsibility and policy', Social Responsibility Journal, vol 12, no. 2, pp. 321-334.

James, SW 2016, 'Beyond ‘local’food: how supermarkets and consumer choice affect the economic viability of small?scale family farms in Sydney, Australia', Area, vol 48, no. 1, pp. 103-110.

Jie, F, Parton, K & Chan, C 2015, 'Australian beef supply chain integration: case studies of the two largest Australian supermarkets. ', International Journal of Supply Chain and Operations Resilience, vol 1, no. 2, pp. 121-138.

Johnston, R, Stafford, J, Pierce, H & Daube, M 2017, 'Alcohol promotions in Australian supermarket catalogues', Drug and alcohol review, vol 36, no. 4, pp. 456-463.

Lavelle, S 2017, Archaeology Down Under: Management and Outcomes in the First State in Australia. In Urban Archaeology, Municipal Government and Local Planning, Springer, Cham, New York City.

Woolworths limited 2017, About us , viewed 23 August 2017, <https://www.woolworthsgroup.com.au/page/about-us>.

Woolworths limited 2017, Strategy and objectives, viewed 23 August 2017, <https://www.woolworthsgroup.com.au/page/about-us/our-approach/strategy-and-objectives>

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